Project Portfolio Management · Project Portfolio Management Model Yvan Petit April 25th., 2008. Top right corner for field-mark, customer or partner logotypes. See Best practice

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Project Portfolio ManagementModel

Yvan PetitApril 25th., 2008

Top rightcorner forfield-mark,customer orpartner logotypes.See Best practicefor example.

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© Ericsson AB 2007 2007-10-102

Ericsson dans le monde

Entreprise suédoise dont le siègesocial est situé à Stockholm

Présente dans plus de 140 pays Fondée il y a plus de 125 ans Plusieurs centres de R-D dans le

monde Plus de 15 000 brevets Leader dans le domaine des

infrastructures cellulaires 60 000 employés, dont quelque

1 600 à Montréal


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© Ericsson AB 2007 2007-10-103

Continued traffic growth

Traffic in Mobile Networks

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Downloads

TV/Streaming

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Mobile PC

Video

Telephony

Voice

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Latin America

Eastern Europe,

Middle East & Africa

Ro APAC

China & India

North America

Western Europe


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© Ericsson AB 2007 2007-10-104

The telecom market is redefiningitself

Voice

Lifestyle

Mobile offíce

MMS(images)

Broadband

VoiceMail

SMS(text)

Voice


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© Ericsson AB 2007 2007-10-105

The R&D and Services Centre

Montreal Site

Operational Excellence in everything we do

Multimedia NetworksGlobalServices

Technology Leadership e2e and User ExperienceInnovation

MUServices

GSM core and servicelayer in a box -QuickLINKIntegration Center forGSM and WCDMA corenetworksNetwork ResourceControlCDMA support

First line Systemsupport for USA andCanadaSystems Integrationfor USA and Canada

MessagingSolutions IMS development Converged MediaSolutions Service Innovation Gaming

Softwaredeployment andSystems Support Systems Integration Field Services &Service Deployment


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Montreal R&D and Service CentreHeadcount Growth

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Employees

Unique situation during the difficult years


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Why develop a ProjectPortfolio model?


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© Ericsson AB 2007 2007-10-108

R&D Operational Excellence

Overall target: Reduce the average lead-time fordevelopment projects

Increase effectiveness (What):Do the right projects

Increase efficiency (How):The right way: Processes, Methods and Tools

Optimize use of R&D Centers (Who & Where):At the right place: resource utilization and keycompetencies


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© Ericsson AB 2007 2007-10-109

Business Case Foundation =Productivity Increase

Stage 0Informal

Stage 1FunctionalPr

oduc

t Dev

elop

men

tPe

rfor

man

ce

Stage 2Project

Excellence

Stage 3Portfolio

Excellence

Stage 4Co-Develop. Excellence

Stage

15% increase


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© Ericsson AB 2007 2007-10-1010

Consensus on most relevant areas

Resource Allocation to projects Dynamic situation: change in scope, new

demands Too many projects – Not the right projects Scope too big – Slows down development

process Project visibility especially in multi-site

environment Integration of the project management and

financial tools


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© Ericsson AB 2007 2007-10-1011

Key Requirements

Support both Portfolio and Project Managers Resource Planning (Capacity Planning) Single entry of data (Integration) Scenario Management (What-if analysis)

Integration with Financial System for cost planning andtracking

Re-use of Ericsson terminology (when possible) Re-use best practices

Key Constraints


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© Ericsson AB 2007 2007-10-1012

Deployment supported by PCP discipline

Pilot

Solution development and tool configuration

Tools evaluation & selection

Process development

Requirements specification

Sta

ge

Time


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The Ericsson ProjectPortfolio model


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© Ericsson AB 2007 2007-10-1014

iPROPS –A project model supporting a common approach toproduct development in Ericsson

Require-ments

Product

Project Work ModelPLCM

Project Management Process

Project Steering Process

TG0 TG1 TG2 TG3 TG4 TG5

Project Work Model

Tollgate Directive Tollgate Directive ––Business AlignmentBusiness Alignment

- Tollgates- Project sponsor- Go decisions

PROPS PROPS ––Project IntegrationProject Integration

- Project management process- Ten PM knowledge areas- Project management

documentsPLCM PLCM ––Process IntegrationProcess Integration

- Product decisions- Disciplines

Product Integration Product Integration ––Operative Operative ProcessesProcesses

- Project anatomy- Work packages- Shipments- Work Package Teams- Quality doors

PROPS

Tollgates Directive

PLCM

OperativeProcesses


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© Ericsson AB 2007 2007-10-1015

Project Portfolio

Product Portfolio

Product versus Project Portfolios

TG Project 2

TG Project 1

TG

Project 4

Project Portfolio Management

Product Portfolio Management

Product 3

Product 1

Product 2

PD

PD

PD

PD

PD

PA Product Line/ Product Council

PDU Project Office/ OSG & PSG


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© Ericsson AB 2007 2007-10-1016


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© Ericsson AB 2007 2007-10-1017

New Roles

ProjectMember

ProjectSponsor

ProjectManager

ResourceOwner

Why –Scope,Cost

WhatWhen

WhoHow

ProjectPortfolioOwner

Strategic fitPriority

ProjectPortfolioManager


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© Ericsson AB 2007 2007-10-1018

Selection of Potential Projects

SelectionVerification of proposals’ alignment to strategy

Idea

Idea

Idea

Idea

Idea

Idea

Idea

Idea

Idea

Idea

ProjectAnalysis

ProjectAnalysis

ProjectAnalysis

Project Planning

Project Planning

Tollgate DecisionConfirmation of project’s alignment to strategy

Proposal

Proposal

Proposal

Proposal

Proposal

Project Portfolio

Projects

Execution

Execution


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© Ericsson AB 2007 2007-10-1019

Availability versus Allocations

Project 2

Project3

Project5

Project6

Project9

Project10

Project20

Project21

Project22

Project23

Project24

Project26

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Time (Invoicing periods)

Fu

ll-T

ime e

qu

ivale

nts

Actuals

Portfolio balancing


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© Ericsson AB 2007 2007-10-1020

Project coverage

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Allocated

Available

Portfolio balancing


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© Ericsson AB 2007 2007-10-1021

Authorize Project Portfolio Plan

Portfolio Decision:Authorization

Approval of the balanced project portfolio’s aggregated plans and cost(based on current approved project and proposal plans)

Project Portfolio

Plan

´Project

´Project

´Project

Proposal

Proposal

´Project

´Project

´Project

´Project

Proposal


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© Ericsson AB 2007 2007-10-1022

PMI Portfolio Management Process

Identification(3.2.1.1)

Evaluation(3.2.1.3)

Selection(3.2.1.4)

Authorization(3.2.1.7)

PortfolioBalancing(3.2.1.6)

Prioritization(3.2.1.5)

ComponentExecution and

Reporting

Categorization(3.2.1.2)

CurrentStrategic Plan•Goals Definitions•& categories•Key Performance Criteria•Capacity Definition

Strategic Planning Process OutputCurrent Strategic Plan Aligning Process (3.2.1) Monitoring and Controlling

Process group (3.2.2) Components Processes

Source: The Standard for Portfolio Management


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© Ericsson AB 2007 2007-10-1023

Differences with PMI Standard

Limited mentionsIntegrated inprocess description

Connection withProjectManagementprocess

Executive ManagerSponsor

Portfolio Manager

Portfolio OwnerSponsor

Portfolio Manager

Roles

Limited mentionsMore focus onadding new projects

and handlingchanges

Projectdisturbances

StrategicContinuousProcess

PMIEricsson


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© Ericsson AB 2007 2007-10-1024

Questions?


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© Ericsson AB 2007 2007-10-1025

Documents

Project Portfolio Management · Project Portfolio Management Model Yvan Petit April 25th., 2008. Top right corner for field-mark, customer or partner logotypes. See Best practice